The bull market of 2023 is impressive. Through August 4th, the S&P 500 has posted a total return of 17.7% this year. The NASDAQ 100 has returned 40.3% in the same period. Both indexes are close to their all-time highs, having recovered the bulk of last year’s drawdown. Note that these returns have been earned as corporate earnings are largely flat to last year. The question that investors must ask themselves today is whether this upward momentum represents a new paradigm in the market or whether valuations will, once again, undergo a regression to the mean….

To read the full version of CapAcuity’s Chief Investment Officer’s quarterly market perspective for 1Q23, click here.